English translation: termination of employment for operational reasons
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Explanation: I'd go with one of the options offered by Dietl/Lorenz or Romain:
"termination of employment for operational reasons" (Dietl/Lorenz)
"business structure dismissal"; "dismissal due to operational requirements" (Romain)
"Redundancy" has the same connotation => (betriebsbedingte) Entlassung wg. Arbeitsmangels, Umstrukturierung (Dietl/Lorenz), I prefer, however, the very first option as "redundancy" - much like betriebsbedingte Kündigung - has become a set concept under British law, involving a number of specific requirements that do not necessarily have an equivalent under the German concept of betriebsbedingte Kündigung (and vice versa).
To avoid the impression that both concepts are identical I would avoid a term describing an existing concept under British law and opt for the translation that reflects the German concept without purporting to be the British equivalent.
Having said that, this only applies to contracts / legal documents - there is nothing wrong with using the term "redundancy" in a newspaper article, for example.